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Install and Configure Avalara AvaTax for Microsoft Dynamics CRM

After you activate AvaTax and set up your company profile, install and configure AvaTax for your business application. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Alter these settings when your business needs change.

Download the AvaTax integration for Microsoft Dynamics CRM

If you didn't already, download your integration software to connect your business application to AvaTax. 

  1. In AvaTax, go to Settings > Integrations > Manage.
  2. Depending on your business application, do one of the following:
    • Select See connector versions, select the most recent version, and then select Download.
    • If you don't see a Download button, select Help and Support for detailed instructions. You may need to log in to your business application website before you see help documentation.
  3. If you downloaded a file, in your Downloads folder, right-click the .zip file and extract the installation folder or file (.exe or .pdf or .msi). 

Install the AvaTax integration for Microsoft Dynamics CRM

  1. Log in to Microsoft Dynamics CRM as a System Customizer.
  2. Go to Settings > Solutions > Import and select the .zip file from AvaTax.
  3. Use the wizard to install AvaTax for Microsoft Dynamics CRM.

Configure

Configure AvaTax for your accounting software

To configure your company settings:

  1. Log in to Microsoft Dynamics CRM as a System Customizer.
  2. Go to Main > Settings > Solutions > Avalara AvaTax.
  3. On the AvaTax Configuration page, fill in the following fields, and then click Test Connection:
    Field Action
    • Account Number
    • License Key
    View your account number in AvaTax. Select Settings > All AvaTax settings. The account number is listed at the top of the page as your Account ID. If you don't know your license key, get a new one.
    Sandbox Select this to connect to a development account, not a production account.
    Companies Choose the company to use from the list of companies you created in AvaTax.
  4. Go to Main > Settings > Avalara Tax > AvalaraTax.
  5. On the AvalaraTax page, specify the following options, and then click Save.
    Field Action

    Commit to AvaTax

    Click to toggle between settings. Choose when transactions are automatically committed to AvaTax and the Doc Status of this transaction is shown as Committed in AvaTax. 

    Enable logging? Optional: This function is primarily used for troubleshooting issues. If you choose to enable logging, all success, warning, and error messages are included in the log. Only enable logging if you've been instructed to do so by Avalara Support because it can significantly slow down your service.
    Disable Tax Calculation Optional: If you choose to disable tax calculation, Microsoft Dynamics CRM no longer uses AvaTax to calculate tax on transactions.
    Disable Address Validation Optional: If you choose to disable address validation, Microsoft Dynamics CRM no longer uses AvaTax to validate addresses.
    Shipping Origin Click the magnifying glass and choose the address, from a list of those already entered in Microsoft Dynamics CRM, to use as the default origin address for documents.
    Shipping Tax Code

    Click the magnifying glass and choose the default Avalara tax code, from a list of those already entered in Microsoft Dynamics CRM, to use for shipping charges. If the correct code isn't listed:

    • If it's a tax code that already exists, click Look Up More Records, search for and select the correct code, and then click Add.
    • If the correct tax code hasn't been created yet, either from Shipping Tax Code list or in the Look Up Record dialogue box, click New to create and add the new code.

Configure Microsoft Dynamics CRM to map items to Avalara tax codes

Some products and services are taxed differently in different jurisdictions. Apply Avalara tax codes to products and services you sell to help account for this varying taxability. There are a few different ways you can apply, or map, Avalara tax codes to your products and services:

  • Map items to predefined Avalara tax codes; associate a code with each item you sell so AvaTax knows which tax rate to apply 
  • Map items to universal product codes (UPCs)

Items that aren't mapped to Avalara tax codes are treated as tangible personal property (TPP) and are fully taxed during calculation.

If you're mapping in Microsoft Dynamics CRM, first import Avalara tax codes into Microsoft Dynamics CRM. Import the tax codes in one of these file formats: .xls, .xlsx, or .csv (comma-separated values) and use the column heading labels exactly as follows:

  • Type Code
  • Description
  • Additional Information  

To import Avalara tax codes:

  1. Go to Settings > Extensions > AvaTax Type Codes.
  2. Import Avalara tax codesHoverTT.png

Configure Microsoft Dynamics CRM to exempt customers from sales tax with entity/use codes

Exemptions are valid only for the address registered for this account. To exempt a document, ensure that the document ship-to address matches the account's registered address. Any account for which an entity/use code isn't selected is taxable by default.

To add entity use codes to your account:

  1. Go to Sales > Accounts and select an account. The account page opens.
  2. To exempt the account, from Entity/Use Code ID, select the entity/use code or click New to create a new one.

In Microsoft Dynamics CRM, click Calculate Tax to calculate sales tax using AvaTax. Sales tax calculation isn't automatically triggered after you save or modify a document. 

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